Which would you choose? V1 @ $200 or V2 @ $500

V1 or V2? I think it boils down to one question. Will this be a simple P&S with kit lens only, or, will it be much more with, perhaps, several lenses, external flash, maybe a second body and, ultimately, the heart of a "system" including the FT-1 adapter?

The V1 is a great camera with many of us owners very pleased. As an owner of 2 V1 cameras and fairly good-sized "system", with the experience gained, I'd recommend the V1 as a fabulous P&S...in some ways better and others not as good as a V2, with differences which probably don't reach the price-difference plateau. However, had I experienced both V1 and V2 and could have purchased either at today's prices, I'd have opted for the V2. Nikon apparently listened to V1 owners (seemingly unlike them!) and made worthwhile changes in ergonomics and operation which are appreciated by many, though unfortunately at the ongoing difference in pricing, not worth the upgrade for most. The image quality difference is so slight it's irrelevant. The real value difference is in how the camera operates and is highly personal.

Bottom line: If they were the same price, the V2 would most assuredly sell in higher volume than the V1 because it does have more resolution, higher fps, no mandatory image review, better grip, better dial placement, built-in flash. How much more it may be worth to youis totally up to you.